[Scarlett]

[quote=sdduuuude]If you were really a staunch libertarian, you would say that banks can loan money to whoever they want, when ever they want under the terms that they want, but the taxpayers aren’t going to bail them out under any circumstances.

That is the regulation change we need – no more socializing the losses.[/quote]

That will be the day! Not that I don’t agree with you.

[Scarlett]

Good point, sdduuude! Esp. about the higher rates and lower prices. That’s what we are waiting for. Seriously, are they going to ever let those rates go really UP? When?

How much you assign for maintenance, let’s say for a year 1970s, 80s or 90s house?

[Scarlett]

Good point, sdduuude! Esp. about the higher rates and lower prices. That’s what we are waiting for. Seriously, are they going to ever let those rates go really UP? When?

How much you assign for maintenance, let’s say for a year 1970s, 80s or 90s house?

[Scarlett]

Good point, sdduuude! Esp. about the higher rates and lower prices. That’s what we are waiting for. Seriously, are they going to ever let those rates go really UP? When?

How much you assign for maintenance, let’s say for a year 1970s, 80s or 90s house?

[Scarlett]

Good point, sdduuude! Esp. about the higher rates and lower prices. That’s what we are waiting for. Seriously, are they going to ever let those rates go really UP? When?

How much you assign for maintenance, let’s say for a year 1970s, 80s or 90s house?

[Scarlett]

Good point, sdduuude! Esp. about the higher rates and lower prices. That’s what we are waiting for. Seriously, are they going to ever let those rates go really UP? When?

How much you assign for maintenance, let’s say for a year 1970s, 80s or 90s house?

[Scarlett]

[quote=FormerSanDiegan][quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.[/quote]

I thought it was $3200. Anyhow, $900 difference wouldn’t be a modest car payment. $400-500 would be. My 3 yr loan payments on a new Accord are close to $700/mo. It’s true about the 401k loan, that it goes back to him eventually; I was thinking about his cash flow.

[Scarlett]

[quote=FormerSanDiegan][quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.[/quote]

I thought it was $3200. Anyhow, $900 difference wouldn’t be a modest car payment. $400-500 would be. My 3 yr loan payments on a new Accord are close to $700/mo. It’s true about the 401k loan, that it goes back to him eventually; I was thinking about his cash flow.

[Scarlett]

[quote=FormerSanDiegan][quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.[/quote]

I thought it was $3200. Anyhow, $900 difference wouldn’t be a modest car payment. $400-500 would be. My 3 yr loan payments on a new Accord are close to $700/mo. It’s true about the 401k loan, that it goes back to him eventually; I was thinking about his cash flow.

[Scarlett]

[quote=FormerSanDiegan][quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.[/quote]

I thought it was $3200. Anyhow, $900 difference wouldn’t be a modest car payment. $400-500 would be. My 3 yr loan payments on a new Accord are close to $700/mo. It’s true about the 401k loan, that it goes back to him eventually; I was thinking about his cash flow.

[Scarlett]

[quote=FormerSanDiegan][quote=Scarlett]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.[/quote]

Assuming the taxes and tax write-off are a wash.
This totals 3100.

However, $550 + per month is principal … and the 401K loan is being paid directly to his retirement account.

Of course there is opportunity cost (or alternatiuvely a benefit if the retirement account declines during the loan payback period) in the 401k loan.

But these numbers, with PMI come pretty close to Rent + a car payment.
My rule of thumb for a new homeowner is if you can buy a house for rent plus a modest car payment in San Diego, it’s worth driving your old beater of a car.

If he can come up with the cash to eliminate PMI, it seems more than reasonable to buy, given those numbers.[/quote]

I thought it was $3200. Anyhow, $900 difference wouldn’t be a modest car payment. $400-500 would be. My 3 yr loan payments on a new Accord are close to $700/mo. It’s true about the 401k loan, that it goes back to him eventually; I was thinking about his cash flow.

[Scarlett]

[quote=AN][quote=Scarlett][quote=UCguy]Here is another reason why to buy – giving our age.
We could choose to give away money to pay PMI for 7-8 years – 38.5 K total over 7.5 years or, to pay rent – 26K per year, times 2.5… > 55K.
[/quote]

I think it’s incomplete calculation. Take into account that in those 2.5 years you will pay, what, $1000/mo LESS on housing if you rent. Plus you don’t have to pay any maintenance, higher utilities, HOA, MR, etc.[/quote]
How do you figure $1000/month less if he rent? A $500k house in PQ/Scripps can probably rent for around $2200-2500, depending on the house. If he put down 10%, aimloan’s rate is @5% w/ 0 points. His monthly payment would be $2400. If you add in tax and insurance, it’ll be ~$3000. If you subtract the tax write off, it should bring it down to around $2500 (depending on tax bracket). This is including paying principal.[/quote]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.

[Scarlett]

[quote=AN][quote=Scarlett][quote=UCguy]Here is another reason why to buy – giving our age.
We could choose to give away money to pay PMI for 7-8 years – 38.5 K total over 7.5 years or, to pay rent – 26K per year, times 2.5… > 55K.
[/quote]

I think it’s incomplete calculation. Take into account that in those 2.5 years you will pay, what, $1000/mo LESS on housing if you rent. Plus you don’t have to pay any maintenance, higher utilities, HOA, MR, etc.[/quote]
How do you figure $1000/month less if he rent? A $500k house in PQ/Scripps can probably rent for around $2200-2500, depending on the house. If he put down 10%, aimloan’s rate is @5% w/ 0 points. His monthly payment would be $2400. If you add in tax and insurance, it’ll be ~$3000. If you subtract the tax write off, it should bring it down to around $2500 (depending on tax bracket). This is including paying principal.[/quote]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.

[Scarlett]

[quote=AN][quote=Scarlett][quote=UCguy]Here is another reason why to buy – giving our age.
We could choose to give away money to pay PMI for 7-8 years – 38.5 K total over 7.5 years or, to pay rent – 26K per year, times 2.5… > 55K.
[/quote]

I think it’s incomplete calculation. Take into account that in those 2.5 years you will pay, what, $1000/mo LESS on housing if you rent. Plus you don’t have to pay any maintenance, higher utilities, HOA, MR, etc.[/quote]
How do you figure $1000/month less if he rent? A $500k house in PQ/Scripps can probably rent for around $2200-2500, depending on the house. If he put down 10%, aimloan’s rate is @5% w/ 0 points. His monthly payment would be $2400. If you add in tax and insurance, it’ll be ~$3000. If you subtract the tax write off, it should bring it down to around $2500 (depending on tax bracket). This is including paying principal.[/quote]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.

[Scarlett]

[quote=AN][quote=Scarlett][quote=UCguy]Here is another reason why to buy – giving our age.
We could choose to give away money to pay PMI for 7-8 years – 38.5 K total over 7.5 years or, to pay rent – 26K per year, times 2.5… > 55K.
[/quote]

I think it’s incomplete calculation. Take into account that in those 2.5 years you will pay, what, $1000/mo LESS on housing if you rent. Plus you don’t have to pay any maintenance, higher utilities, HOA, MR, etc.[/quote]
How do you figure $1000/month less if he rent? A $500k house in PQ/Scripps can probably rent for around $2200-2500, depending on the house. If he put down 10%, aimloan’s rate is @5% w/ 0 points. His monthly payment would be $2400. If you add in tax and insurance, it’ll be ~$3000. If you subtract the tax write off, it should bring it down to around $2500 (depending on tax bracket). This is including paying principal.[/quote]

I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.

$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.

[Author]

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